Credit Insurance


Overview

Simply stated, credit insurance protects debt.  Credit life and credit disability insurance is sold in conjunction with credit transactions to protect a variety of loans.  When a borrower has chosen to purchase this insurance, the benefits are designed to pay off or reduce the loan in the event of a covered death or disability.  The benefits are paid to the financial institutions holding the loan.  The purchase of credit life and credit disability is voluntary and can be cancelled at any time.  

Credit Life

Credit life insurance is designed to pay off or reduce a loan in the event of a borrower’s death, due to a covered sickness or injury as defined by the certificate or policy of insurance provisions.  To learn more about credit life insurance  click here.

Credit Disability

Credit disability insurance is designed to pay the scheduled monthly payment, or a portion of it, if a borrower becomes totally disabled due to a covered sickness or injury as defined by the certificate or policy of insurance provisions.  To learn more about credit disability insurance  click here.

Credit Life Insurance

Credit life insurance is designed to pay off or reduce a loan in the event of a borrower’s death, due to a covered sickness or injury as defined by the certificate or policy of insurance provisions.  The Irrevocable Beneficiary of a credit life insurance certificate or policy is the lender holding the loan, and is noted as the Creditor Beneficiary on the certificate or policy. 

Different coverage options of credit life insurance may be available including:

  • Gross Pay Decreasing Life
    Gross pay decreasing life is designed to provide coverage for the total indebtedness (principal, financed loan fees and credit insurance premiums) of the loan. In addition to the loan amount, gross pay decreasing life includes the interest.  The coverage decreases each month by an equal amount.
  • Net Pay +2 Decreasing Life
    Net pay decreasing life insurance is designed to provide coverage for the amount financed (principal, financed loan fees and credit insurance premiums).  This does not include the unearned interest.  The coverage decreases at the same rate the amount financed amortizes over the term of the loan.  Additional benefit features may include coverage for a portion of the unpaid interest that may continue to accrue after a borrower’s death.
  • Truncated Net Pay +2 Decreasing Life Benefit
    Truncated means the term of insurance is less than the term of the loan; thus a portion of the loan term is not protected.  For a benefit, the death must occur during the time the loan is insured.   
    Truncated net pay decreasing life insurance is designed to provide coverage for the amount financed (principal, financed loan fees and credit insurance premiums).  This does not include the unearned interest.  The coverage decreases at the same rate the amount financed amortizes over the term of the loan.  Additional benefit features may include coverage for a portion of the unpaid interest that may continue to accrue after a borrower’s death. 
  • Level Life
    Level life insurance (single payment/balloon payment) is designed to provide coverage for the full amount of the loan.  The coverage remains constant during the term of insurance and is a flat level amount, regardless of the remaining balance.
  • Partial Coverage
    Partial coverage means the coverage is less than the:
    • Total indebtedness for gross pay decreasing life
    • Amount financed for net pay decreasing life
    • Amount financed for truncated net pay decreasing life 
    • Total indebtedness/balloon payment for level life 

      When partial coverage is issued, it may not be enough to completely pay off the loan. 

Information provided represents a general description of credit life insurance. Refer to the policy or certificate for specific eligibility requirements, terms, conditions, limitations, exclusions, and maximum benefit limits. Credit life insurance may vary by state.

Credit Disability

Credit disability insurance is designed to pay the scheduled monthly payment, or a portion of it, if a borrower becomes totally disabled due to a covered sickness or injury as defined by the certificate or policy of insurance provisions. The benefits are paid to the financial institution holding the loan.   

Different coverage options of credit disability may be available including:

  • Full Term of Insurance Disability
    Full term of insurance disability is designed to provide a monthly benefit, should a borrower become totally disabled.  This coverage option is designed to provide a monthly benefit throughout the full term of the insurance.
  • Critical Period Disability
    Critical period disability provides a monthly benefit for a maximum number of payments over the term of insurance should a borrower become totally disabled.  The maximum number of payments is an accumulation of payments from all disability claims paid under this insurance. 

A disability waiting period is the number of days a borrower must be totally disabled before disability benefits become payable.  A waiting period begins on the date of first medical treatment after a borrower becomes totally disabled. 

  • Elimination Waiting Period
    Benefits are calculated from the day after the disability waiting period ends.
  • Retroactive Waiting Period
    Benefits are calculated back to the first day of the disability waiting period, once the waiting period has been met. 

Information provided represents a general description of credit disability insurance.Refer to the policy or certificate for specific eligibility requirements, terms, conditions, limitations, exclusions, and maximum benefit limits. Credit disability insurance may vary by state.

American Heritage Life Insurance Company

American Heritage Life Insurance

CSO is proud to be the third party administrator for American Heritage Life Insurance Company (AHL). In this administrator capacity for AHL, CSO processes credit life and credit disability policies and claims underwritten by AHL. For assistance please select from the options noted below. Or at any time, please contact a CSO Representative at the toll free number noted directly above.

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File a Claim

CSO prides itself on delivering exceptional claim service to AHL policyholders and accounts. Claim Auditors are available to personally answer incoming calls during the business hours of 7:30 am to 5:00 pm (CST). Claim forms are available by selecting the option below. Once printed, please complete as instructed. Should you have any questions, a Claim Auditor can be reached by calling 800-826-6587. A copy of the completed claim form can be faxed to CSO's claim department at 800-325-9116.

Click here to print a claim form


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Claim Status

For information on the status of your claim, please contact CSO's claim department at 800-826-6587. 


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Proof of Payoff Notice


Customer Service 800-826-6587 (M-F 7:30am-5:00pm Central)

Customer Service

For assistance please select from the options noted below. Or at any time, please contact a CSO Representative at the toll free number noted directly above.

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File a Claim

CSO prides itself on delivering exceptional claim service to its policyholders and accounts. Claim Auditors are available to personally answer incoming calls during the business hours of 7:30 am to 5:00 pm (CST). Claim forms are available by selecting the option below. Once printed, please complete as instructed. Should you have any questions, a Claim Auditor can be reached by calling -800-826-6587.

A copy of the completed claim form can be faxed to CSO's claim department at 1-800-325-9116.

Click here to print a claim form


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Commonly Asked Claim Questions

The following provides answers to some of the commonly asked questions on a credit insurance claim.

The Central States Health & Life Co. of Omaha (CSO) credit insurance contract should be reviewed for complete information and details about any coverage, benefits, exclusions or claim questions. The answers below do not alter or modify the terms of the contract.

Credit Life Claim Questions
Credit life insurance provides a benefit designed to pay off or reduce the Borrower’s loan balance, in the event of their death due to a covered event.
The Creditor Beneficiary is the name of the lender to whom loan payments are made. Any claim benefits that are payable are paid to the Creditor Beneficiary first, as long as there is an outstanding balance on the loan. The Creditor Beneficiary is the irrevocable beneficiary, meaning that it cannot be changed. Any excess benefits that remain will be paid to the Co-Borrower if joint coverage was purchased otherwise excess benefits will be paid to the Secondary Beneficiary listed on the contract.
CSO requires an original certified death certificate and a copy of the most recent loan payment coupon/loan statement. CSO may also request an authorization form signed by the next of kin (if required). In addition, CSO will request loan pay-off information from the lender.
If CSO is in receipt of conflicting information, we may request additional documentation of the loss or to validate the Borrower’s eligibility for coverage. This information may affect or compromise the benefits. Please refer to the contract as it provides information about the Borrower’s rights and CSO’s rights.
It varies depending on how quickly CSO is in receipt of the authorization and how quickly the medical providers respond to CSO’s request. Unfortunately, a part of this process is outside of CSO’s control and depends on the medical provider and what their requirements are in order to release medical information.
It is important that all medical providers are listed on the authorization. If incomplete information is provided at the onset of the claim, it can cause delays in the claim handling.
CSO recommends keeping the loan current until CSO has all the required information necessary to make a claim determination.
The credit life insurance does not cover late payments charged by the lender. It is important to keep the loan in good standing to avoid late charges or loss of collateral.
Credit Disability Claim Questions
Credit disability insurance provides a benefit designed to pay the scheduled loan payment, or a portion of it, in the event of your total disability due to a covered sickness or injury.
The Creditor Beneficiary is the name of the lender to whom you make your loan payments. Any claim benefits that are payable are first paid to the Creditor Beneficiary to be applied to your outstanding loan balance. The Creditor Beneficiary is the irrevocable beneficiary meaning that it cannot be changed.
A Report of Disability claim form will need to be completed after you have been continuously totally disabled beyond your waiting period. CSO will mail this form to you or you can print it off our website, CSO.com. There are 4 parts that must be completed: (1) Loan Information - includes name and address of the lending institution and requires a copy of the monthly loan statement or payment coupon; (2) Insured’s Statement - completed by you and includes your signature on the Authorization to Obtain Information; (3) Employer’s Statement - must be completed by your employer (or you, if self-employed) and; (4) Attending Physician’s Statement - must be completed by your medical provider. Incomplete claim forms can delay the processing of your claim.
Your waiting period is shown on your contract. Your waiting period duration would be one of the following: 7, 14 or 30 days. There are two types of waiting periods: a retroactive waiting period or an elimination waiting period. Please refer to your contract for the definition of your type of waiting period, but these are generally defined as:
Retroactive – you have to be totally disabled for the duration of the waiting period, but benefits are paid retroactively back to the date of first medical treatment.
Elimination – you have to be totally disabled for the duration of the waiting period, benefits are paid the first day after the required waiting period is met.
If CSO is in receipt of conflicting information, CSO may request additional documentation of your loss, or to determine if your loss is impacted by a pre-existing condition, or to validate your eligibility for coverage. This information may affect or compromise your benefits. Please refer to your contract as it provides information about your rights and CSO’s rights.
It varies depending on how quickly CSO is in receipt of the authorization and how quickly your medical providers respond to CSO’s request. Unfortunately, a part of this process is outside of CSO’s control and depends on the medical provider and what their requirements are in order to release medical information.
It is important that all medical providers are listed on the claim form. If incomplete information is provided at the onset of the claim, it can cause delays in the claim handling.
CSO recommends you continue to keep your loan current until CSO has all the required information necessary to make a claim determination. CSO also recommends you contact your lender for further guidance.
Claim benefits are paid according to the date you first become totally disabled and have stopped working, as defined in your contract, and are paid every 30 days as long as you remain totally disabled and continue to submit proof of your continuing total disability. The date benefits are paid may not line up with your loan payment due date. CSO recommends you contact your lender in order to assure your account remains current. The insurance does not cover late fees charged by your lender.
Claim benefits are paid according to the dates you are actually totally disabled and after you have stopped working and your waiting period has been met. Payments are 1/30th of the available benefit for each day you remain totally disabled. If you are not working and are totally disabled for 15 days, then your benefit payment will only be for 15 days.
The first claim form is considered the initial notice of the total disability. Your contract provides CSO with the right to request ongoing verification of your total disability. Monthly claim forms are required to certify the continuing total disability and must be completed by you and your medical provider.
Sending in the claim forms early can actually delay the claim benefit. Continuing claim forms should be submitted no sooner than the date listed on your Explanation of Benefits (EOB) statement.
No, the fee charged by your medical provider is between you and your medical provider. If your condition worsens, or your disability is considered total and permanent, contact CSO about reducing the frequency of the claim forms. CSO may be able to help, depending on the circumstances.
The credit disability insurance you purchased provides benefits while you are totally disabled. It does not cover ‘partial disability’. If your medical provider released you to work light duty, then you may no longer be considered ‘totally disabled’ as defined in your contract and benefits may stop. Please refer to your contract as it provides information about your rights and CSO’s rights.
As long as there is an outstanding loan balance, claim benefits will be paid to the Creditor Beneficiary as required by your contract. If the loan was paid off prior to the Scheduled Expiration Date of the Insurance and benefits are still due for the period of total disability prior to date the loan was paid off, then payments will be made directly to you.
The Creditor Beneficiary is the name of the lender to whom you make your loan payments. Any claim benefits that are payable are paid to the Creditor Beneficiary first, as long as there is an outstanding balance on the loan. The Creditor Beneficiary is the irrevocable beneficiary meaning that it cannot be changed.
CSO accepts faxed claim forms, however, we request you also mail the original claim form to us.

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Licensing